The 'Goods and Services Tax' rate on essential food items is: MCQ with Answer and Explanation

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The 'Goods and Services Tax' rate on essential food items is:

A. 18%

B. 5%

C. 0%

D. 12%

Answer: Option C

Solution (By JKSSB Mock Tests)

Essential food items are often at 0% GST.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The term 'Primary Deficit' is defined as:

A. Fiscal deficit minus interest payments

B. Fiscal deficit plus interest payments

C. Budget deficit minus interest payments

D. Revenue deficit minus interest payments

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Correct Answer: Option A

Explanation:
Primary deficit = Fiscal deficit − Interest payments. It indicates the borrowing requirement of the government excluding interest payments on previous borrowings.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'net factor income from abroad' is negative when factor incomes paid abroad are:

A. greater than factor incomes received from abroad

B. less than factor incomes received from abroad

C. zero

D. equal to factor incomes received

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Correct Answer: Option A

Explanation:
Net factor income from abroad is negative when payments abroad exceed receipts from abroad.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Fisher effect' suggests that if expected inflation rises by 1%, nominal interest rates:

A. fall by more than 1%

B. remain unchanged

C. rise by about 1%

D. fall by 1%

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Correct Answer: Option C

Explanation:
The Fisher effect indicates nominal interest rates rise with expected inflation one-for-one in the long run.

This question belongs to: Economy GK Economy Set 1

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